Bob Robotti thinks investors interested in energy companies should focus their attention on Canada.
There are two reasons for this.
The first is that the horizontal drilling revolution came to Canada later than the U.S. and there are still companies with underappreciated assets in tight oil plays.
The second is the big difference LNG will make to the natural gas market in Canada. Robotti believes that Canada is much further down the road towards building LNG export facilities. If two of those facilities are built it will make a huge difference to how much natural gas production is needed in Canada.
Canada currently produces roughly 15 billion cubic feet of natural gas per day. Two LNG plants could add 2 billion to 4 billion cubic feet to natural gas demand which is a large percentage increase.